DavidDTW

The word "enhancement" comes to mind.

There actually doesn't seem to be much price diffence, even though you would expect one. Starbucks stores around here sell a 1lb bag of french roast for $11.95, and the grocery store or Target sale price for a 12oz bag is usually $5.99-7.99.

BamaVol

Ah, but the 12 ounce bag scores a star, same as the 16 ounce. So, the same volume that gets you 12 stars from the grocery store nets 9 at Starbucks.

I've usually waited for the promos that get you multiple stars for each bag purchased. Unfortunately, there's a code thief prowling the aisles of my local Publix. Too many bags are missing the sticker. Without the star, I usually opt for a less expensive brand at the grocery store.

LoveHateRelationship

There are still double star days once a month but this devaluation is disappointing to say the least.

What is interesting though is that if the US and Canadian programs are 2 stars for every $1 spent, isn't there an opportunity for Americans to get a Canadian Starbucks program and earn what is essentially 40% more stars given the exchange difference? I know that Starbucks doesn't charge foreign currency fees when buying around the world so this could be a good opportunity.

swag

Back when each bag was good for a free cup, I once had a barista tell me that they did that to get the folks brewing at home to come into the store, hoping we would realize that (since the Starbucks shop bags were bigger), on a per ounce basis, it was the same price or cheaper than in the grocery. But that ignored the fact that supermarkets have sales and accept newspaper coupons, and the Starbucks stores didn't. My Tom Thumb/Safeway is $9.99 full price, but I just wait for the $6.99 or better sale every couple of months and stock up.

I'll buy the bags of coffee whenever, then just save the codes until they have a promo running and enter the code then.

I've been burned once or twice by a star-less bag that someone had harvested, but it's not common around here.

I figure if I'm redeeming for a simple drip coffee, each star is worth about 20 cents. Even on something like a quad-shot latte, a star is only 50 cents. A missing star is not enough to make me buy a less-preferred brand. But I suppose that sort of brand loyalty is why they can devalue...

Oreto

From the viewpoint of someone who works Q.C. for a major consumer products company, coupons are a nightmare to apply in an automated process. 100% compliance is expensive to guarantee. My company (unless the coupon is advertised) shoots for ~80%. Most of the time we get in the high 90's but there are instances of major failures.

This is a slight devaluation (note: I don't order americano or the like), no doubt, but it is one that I support because I go to Starbucks 1-2x/week and about half the time at the main one that I frequent there is 1 person in the line doing the separate transactions ploy. The worst one time was 1 person splitting 5 drink orders with quite a few customizations. Ordering from the app helped that but this change should also help.

Although I mentioned this in a survey that they sent me, my biggest gripe was the lack of convenient parking at many of their locations.

IceTrojan

It was the only status I was proud to display on FT. I hate that it's being enhanced now.

Anyone now of any programs that will status match my Gold?

But seriously... I think on my last reward drink, I'm going to go Full Monty on the order. Perhaps an Ice Caramel Macchiato with 50 extra shots and 50 pumps of vanilla, extra drizzle, extra ice, split into 12 cups. Using whole milk, of course.

Silver Fox

I like your style !

rustykettel

RTW - round the waistline.

WCT3U

Starbucks is doing a program replacement, not enhancement. Today the program is a digital punch card. At the Gold level, each swipe of the register gets your card (digitally) punched. A dozen punches lets you redeem the card for a drink or snack. New members need to accumulate 30 punches before their subsequent punches count towards rewards.

With the new program, you earn two points per dollar spent and you can redeem 125 points for rewards. Points are on a sliding window and they expire after six months. You need 300 points to become Gold. (Existing Gold customers are grandfathered in).

This is a replacement because the means of gathering credits (punches, points, stars) is changed as well as the magnitude of the total. IMHO, a different mindset is needed to count to 125 instead of 12. You can (almost) count your existing stars/punches on your fingers but with the new program, the balance will be harder to keep in your head. My reading of the terms of use is that instead of having, say, a balance of three rewards ready to redeem and four stars, you may have a balance of 415 stars. Plus Starbucks can give out "rewards", for instance on your birthday, so you may have 415 stars and one reward.

Many people complained that the existing program isn't fair -- big spenders don't get bigger rewards. I'm not swayed by that. The existing program rules are clear and they are applied to everyone without discrimination. It's not a dollar-spent program so don't judge it on that aspect. People also complain about "gaming" the system by purchasing items as individual transactions. But that's also clear in the rules. If that was a real issue, Starbucks could speed that up at the register. Or move to a point per item reward calculus. In a Fortune magazine article (http://fortune.com/2016/02/22/starbucks-loyalty/) it says:
Is one percent that big a number so as to justify the overhaul? It sounds like Starbucks is making excuses.

I have fun with the current program. It even pulls me into the stores with impulse buys because I not only get a drink but I get a shiny star as well. I can picture one star out of twelve. And sometimes I will impulsively buy the cheapest drink on the menu just to get a star. I don't know that I will have the same motivation when a coffee gives me, say, 4.6 out of 125 stars.

Many of my Starbucks purchases are at a supermarket which has a rewards program for gas -- each dollar spent is worth a point and 100 points gives you ten cents off a gallon. Pretty much the same as the new Starbucks. I don't know that they want their stores to be on par with gas stations.

bluemeansgo

Whole milk? Come on! You gotta ask for a brevé next time!

This is true. All good points.


Starbucks could have EASILY just made it a maximum of 1-transaction star every 2 hours. That would effectively END any 'gaming' of the system.

One could argue that the new system is not fair to those that only drink regular coffee at SBUX. I get why people think it's not fair, but that's like saying it's not fair when people wait until the end of the merge lane to merge into slow traffic. If you want to merge early, that's fine, but the merge lane exists for a reason and merging anywhere along the point is acceptable. I always let people in because there are more important things to worry about.

IceTrojan

Good gawd, I'm only trying to give myself high cholesterol, not a full blown heart attack!

WCT3U

I think it would just inflate the number of accounts. I already use two cards when I order two items. "I'd like a tall coffee on this card and a dopio expresso on this one, please". The cards are from the same account but I could easily have created a 2nd and accumulated stars in parallel on both.

A star time-limit may also reduce sales. I'd be less inclined to order the second drink for my spouse. We could share a slightly larger coffee instead. (The program change also discourages small purchases in the same way. Today any swipe, no matter how small, gives you 1/12th of a reward. New program gives you only a tiny star for a tiny purchase).

But I think the splitting is a non-issue. Starbucks estimates that 1% of their transactions are from splitting. Lets say that one out of ten of those causes a noticeable delay. You'd have to then consider the average queue length. Doesn't seem like much to me. Seems to me that at Starbucks you are always going to have people who can't place an order efficiently.

BamaVol

Yes, even without splitting an order, I find that those in front of me at Starbucks take far too long to order and pay.

I have about $14 left on my SBUX card. Once spent, I should have my last reward earned. After using it, I plan to retire the card and buy coffee elsewhere unless Starbucks is the convenient choice. Bye-bye gold.

coachrowsey

Me also.

swag

Status matches cming?

http://news.yahoo.com/dunkin-donuts-...--finance.html